SIOS Corp (3744) AI Stock Analysis

• Market Cap: ¥3.92B
• Dividend Yield: 1.39%
• Average Volume (3M): 39.75K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.98
• Revenue Growth: -7.06%
• EPS Growth: 147.27%
• Country: JP
• Employees: 481
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 9.28
• Shares Outstanding: 8,874,400
• 10 Day Avg. Volume: 32,170
• 30 Day Avg. Volume: 39,746
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 3.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥482.00
• Price Target Upside: 6.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥482.00 ▲(6.64% Upside)

SIOS Corp's strong financial performance is the most significant factor, showcasing robust revenue growth and excellent cash flow management. However, technical analysis indicates bearish trends, which could pose short-term risks. The attractive valuation suggests potential upside, but the lack of earnings call data and corporate events limits additional insights.

SIOS Corp Business Overview & Revenue Model

Company Description

SIOS Corporation engages in the open system infrastructure and application businesses. The company offers digital transformation services to transform products, services, and business models; LifeKeeper, a failover software product that automatically switches a failed primary server to a backup server; open-source solutions; and open-source software products. It also provides Gluegent Gate, which manages ID in the cloud; Gluegent Apps group scheduler that adds team calendar schedule management function to Google calendar; and support services for system development and implementation to educational and financial institutions, as well as develops, markets, and updates document management software applications. The company was formerly known as SIOS Technology, Inc. and changed its name to SIOS Corporation in October 2017. SIOS Corporation was incorporated in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

SIOS Corp generates revenue through the sale of its software solutions and services focused on high availability and disaster recovery. The company's primary revenue streams include software licenses, subscription services, and maintenance contracts. SIOS Corp also offers professional services such as consulting, implementation, and support, which contribute to its earnings. Additionally, the company may engage in strategic partnerships and collaborations that enhance its product offerings and expand its market reach, thus driving further revenue growth.

SIOS Corp Financial Statement Overview

Summary

SIOS Corp presents a compelling financial profile with solid growth in revenue and profitability, supported by a strong balance sheet and excellent cash flow management. The transition from losses to profits and strong cash generation positions the company favorably in the software application industry, suggesting promising prospects for future growth and stability.

Income Statement

SIOS Corp has demonstrated substantial revenue growth over the recent years, with a notable increase from 2020 to 2024. The company has shown positive net income in the latest year, marking a turnaround from previous losses. The gross profit margin remains healthy, though the EBIT margin is modest, reflecting operational cost challenges. Overall, the income statement indicates a strong recovery and growth trajectory, boosting its profitability metrics.

Balance Sheet

The balance sheet reflects a strong equity position with an improving equity ratio, suggesting financial stability. The debt-to-equity ratio is low, indicating prudent financial management and low leverage risk, which is favorable for future growth. However, the return on equity has been volatile, reflecting fluctuations in profitability over the years.

Cash Flow

SIOS Corp's cash flow statement shows robust free cash flow growth, particularly in the latest year, which enhances its financial flexibility. The operating cash flow to net income ratio is healthy, signifying efficient cash generation relative to reported profits. The positive free cash flow is a strong indicator of the company's ability to reinvest in growth opportunities and manage financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.24B	20.56B	15.89B	14.42B	15.73B	14.84B
Gross Profit	5.24B	5.33B	5.22B	4.67B	4.88B	4.47B
EBITDA	728.09M	647.78M	-31.24M	-437.77M	488.81M	505.94M
Net Income	447.38M	351.00M	-18.88M	-639.79M	367.75M	310.14M
Balance Sheet
Total Assets	7.54B	8.09B	6.71B	6.02B	6.65B	6.85B
Cash, Cash Equivalents and Short-Term Investments	3.34B	3.68B	2.60B	2.51B	3.15B	2.86B
Total Debt	54.10M	102.30M	181.22M	222.95M	314.85M	479.63M
Total Liabilities	5.91B	6.55B	5.52B	4.78B	4.75B	5.30B
Stockholders Equity	1.63B	1.54B	1.19B	1.24B	1.90B	1.55B
Cash Flow
Free Cash Flow	0.00	857.00M	-13.01M	-432.52M	543.56M	592.84M
Operating Cash Flow	0.00	865.53M	28.49M	-370.38M	587.14M	649.31M
Investing Cash Flow	0.00	298.01M	188.13M	-107.72M	58.01M	151.42M
Financing Cash Flow	0.00	-127.98M	-157.72M	-245.87M	-267.44M	-182.99M

SIOS Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 452.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3744, the sentiment is Negative. The current price of 452 is below the 20-day moving average (MA) of 489.40, below the 50-day MA of 503.56, and above the 200-day MA of 404.45, indicating a neutral trend. The MACD of -12.43 indicates Positive momentum. The RSI at 38.16 is Neutral, neither overbought nor oversold. The STOCH value of 26.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3744.

SIOS Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5256	75 Outperform	¥3.47B	17.86	―	―	8.55%	22.83%
3744	67 Neutral	¥3.92B	8.76	―	1.39%	-7.06%	147.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3976	54 Neutral	¥2.34B	―	―	―	-4.52%	2.56%
3710	53 Neutral	¥3.01B	27.53	―	1.02%	-6.71%	―
3936	46 Neutral	¥5.94B	―	―	―	33.37%	53.98%
3910	44 Neutral	¥1.62B	―	―	1.34%	19.09%	75.98%